DABUR 2019-20 Annual Report Analysis

Tue, 31 Mar

DABUR has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

DABUR Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY20 as against 19.6% in FY19.
• Depreciation charges increased by 24.6% and finance costs decreased by 16.9% YoY, respectively.
• Other income grew by 3.1% YoY.
• Net profit for the year grew by 0.2% YoY.
• Net profit margins during the year declined from 17.0% in FY19 to 16.7% in FY20.

DABUR Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	84,969	86,657	2.0%
Other income	Rs m	2,962	3,053	3.1%
Total Revenues	Rs m	87,931	89,710	2.0%
Gross profit	Rs m	16,642	16,924	1.7%
Depreciation	Rs m	1,769	2,205	24.6%
Interest	Rs m	596	495	-16.9%
Profit before tax	Rs m	17,239	17,277	0.2%
Tax	Rs m	2,786	2,797	0.4%
Profit after tax	Rs m	14,453	14,479	0.2%
Gross profit margin	%	19.6	19.5
Effective tax rate	%	16.2	16.2
Net profit margin	%	17.0	16.7

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DABUR Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 25 billion as compared to Rs 27 billion in FY19, thereby witnessing an decrease of -7.4%.
• Long-term debt stood at Rs 2 billion as compared to Rs 261 million during FY19, a growth of 525.3%.
• Current assets rose 36% and stood at Rs 49 billion, while fixed assets fell 8% and stood at Rs 45 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 93 billion as against Rs 84 billion during FY19, thereby witnessing a growth of 11%.

DABUR Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	55,567	65,125	17.2
Current Liabilities	Rs m	26,603	24,639	-7.4
Long-term Debt	Rs m	261	1,629	525.3
Total Liabilities	Rs m	84,366	93,320	10.6
Current assets	Rs m	35,862	48,803	36.1
Fixed Assets	Rs m	48,504	44,518	-8.2
Total Assets	Rs m	84,366	93,320	10.6

DABUR Cash Flow Statement Analysis

• DABUR's cash flow from operating activities (CFO) during FY20 stood at Rs 16 billion, an improvement of 7.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -10 billion, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 540 million from the Rs -515 million net cash flows seen during FY19.

DABUR Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	14,991	16,136	7.6%
Cash Flow from Investing Activities	Rs m	3,369	-5,168	-
Cash Flow from Financing Activities	Rs m	-18,882	-10,430	-
Net Cash Flow	Rs m	-515	540	-

Current Valuations for DABUR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 450.3, stands at 55.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.2 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at 46.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	48.1	49.0
TTM Earnings per share	Rs	8.2	8.2
Diluted earnings per share	Rs	8.2	8.2
Price to Cash Flow	x	44.6	46.7
TTM P/E ratio	x	50.0	55.0
Price / Book Value ratio	x	13.0	12.0
Market Cap	Rs m	722,148	779,629
Dividends per share (Unadj.)	Rs	2.8	3.0

Ratio Analysis for DABUR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY20, from 1.3x during FY19. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 35.9x during FY20, from 29.9x during FY19. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 22.2% during FY20, from 26.0% during FY20. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 26.6% during FY20, from 31.9% during FY19. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 16.0% during FY20, from 17.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.3	2.0
Debtors’ Days	Days	4	3
Interest coverage	x	29.9	35.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.8	16.0
Return on equity	%	26.0	22.2
Return on capital employed	%	31.9	26.6

To see how DABUR has performed over the last 5 years, please visit here.

DABUR Share Price Performance

Over the last one year, DABUR share price has moved up from Rs 409.1 to Rs 450.3, registering a gain of Rs 41.2 or around 10.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,254.9 (up 5.8%). Over the last one year it has moved down from 11,741.5 to 10,254.9, a loss of 1,487 points (down 12.7%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for DABUR and quarterly results for DABUR)

Read: Latest Annual Report Analysis of DABUR